Monte Carlo Fas. (MONTECARLO)

FairStock Score: 41/100 — MIXED

Score breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 1/1

Key Financials

Strengths

• Reasonable valuation with P/E of 11.93 and PEG of 1.04 relative to double-digit growth
• Healthy profitability: ROE 12.86%, ROCE 12.77%, and latest quarter net margin around 17.6%
• Strong promoter holding of 73.17% aligning management with shareholders
• Solid Piotroski F-Score of 7/9 indicating decent financial fundamentals
• Attractive dividend yield of 3.61% provides downside support

Concerns

• Debt/Equity of 0.89 is elevated and could strain earnings if business slows
• Stock has fallen sharply from 52-week high of ₹860.95 to ₹533.95, suggesting possible competitive or operational pressure
• FairStock Score of 49/100 flags mixed fundamentals
• Apparel is a competitive, low-moat industry; the numbers alone do not prove durable pricing power

AI Analysis

At ₹533.95, Monte Carlo presents an interesting but not obvious value case. The market cap is ₹1,150 Cr, and the P/E of 11.93 gives an earnings yield of roughly 8.4%. For a business growing sales at 10.86% and profit at 12.06%, the PEG of 1.04 suggests the price is broadly fair for a moderate compounder. ROE and ROCE are both around 12.8%, which is acceptable but not exceptional. What I like is the latest quarter: ₹608 Cr sales and ₹107 Cr profit, implying a healthy net margin of about 17.6%. Promoter holding of 73.17% is another positive—owners are aligned with minority shareholders. The dividend yield of 3.61% gives a patient investor something to hold onto while waiting for value to be recognized. That said, I cannot ignore the balance sheet. Debt to equity of 0.89 is higher than I would prefer. In an apparel business, fashions change, competition is intense, and a debt burden magnifies trouble. Graham would look at the book value of ₹355.59 against the price of ₹533.95; at 1.5 times book, there is some cushion, but no deep margin of safety. The stock has fallen from ₹860.95 to ₹533.95, and the FairStock Score of 49/100 is mixed. The Piotroski F-Score of 7/9 tells me financial health has been decent, but value traps exist in this industry. I would classify Monte Carlo as a Stalwart—moderate growth, reasonable profitability, and a dividend—rather than a fast grower or deep asset play. I would not rush to buy at the current price unless I saw clear evidence that debt is coming down and margins are durable. Patience, as always, is the key.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer